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Inside track: Superannuation, Funds Management & Financial Services

22 February 2021

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

Govt uses super legislation to impose portfolio holdings change
MEFIA – 18 February 2021 – In what represents a hook in the Government’s Your Future Your Super legislation, it has moved to impose portfolio holdings requirements on superannuation funds.  More...

Your future, your Super reforms introduced into parliament
TREASURY – 17 February 2021 – The Morrison Government has introduced legislation into parliament to ensure the superannuation system works harder for all Australians. The Your Future, Your Super package is scheduled to commence on 1 July 2021.  More...

Industry funds rail against Government ‘kill switch’
MEDIA – 17 February 2021 – Industry superannuation funds are accusing the Government of unprecedented legislative over-reach within its Your Future Your Super legislation particularly around powers to ban superannuation fund investment and expenditure decisions.  More...

Government’s superannuation package likely to cause consumer harm without substantial changes
AIST – 17 February 2021 – The Government’s Your Future Your Super legislation – introduced into Parliament – will not achieve its objectives and may cause consumer harm, the Australian Institute of Superannuation Trustees (AIST) warned.  More...

Revisions proposed to Insurance in Super voluntary code
MEDIA – 16 February 2021 – The vulnerable members provisions of the Insurance in Superannuation Voluntary Code of Practice have been amended by three major lobby groups covering the superannuation industry.  More...

APRA outlines super work targets
MEDIA – 15 February 2021 – The Australian Prudential Regulation Authority is working towards publishing enhanced data on group insurance some time next year, Deputy Chairman Helen Rowell said in a speech.  More...

AIST submission: Draft Prudential Standard CPS 511 Remuneration
AIST – 12 February 2021 – AIST is concerned that the content of the revised draft Standard is overly focused on issues related to ADIs and APRA-regulated insurance entities and does not consider the different remuneration features of RSE licensees.  More...

ASIC update: Compensation for financial advice related misconduct as at 31 Dec 2020
ASIC – 12 February 2021 – Six of Australia's largest banking and financial services institutions have paid or offered a total of $1.24 billion in compensation, as at 31 December 2020, to customers who suffered loss or detriment because of fees for no service misconduct or non-compliant advice.  More...

Tax Office reveals early super fraud numbers
MEDIA – 11 February 2021 – The ATO has released estimates around the rates of fraud through the early release of super scheme, while a taskforce has launched six operations into potential violations. The Serious Financial Crime Taskforce has estimated the attempted fraud rate on early super applications came to 0.05 per cent.  More...

Government faces rare coalition of forces opposing its super changes
MEDIA – 11 February 2021 – The Government is being accused of regulatory over-reach via its Your Future Your Super legislation with industry, particularly the sections imposing a best financial interest duty on superannuation fund trustees while delivering significant discretionary powers to the minister.  More...

ASFA calls for measures to improve the equity of superannuation
ASFA – 10 February 2021 – The ASFA Pre-Budget Submission released today focuses on the findings of the Retirement Income Review (RIR) on equity in the system. While the RIR found Australia’s retirement income system is effective, it made a number of observations about the fairness of current tax concessions for superannuation and the amount of support provided to higher-income earners.  More...

Royal commission showed culture trumps rules: Aus Ethical
MEDIA – 09 February 2021 – The second anniversary of the release of the final report from the royal commission, where 76 recommendations for reforms across government, regulators and the financial services industry were made. The opposition, legal firms and consumer bodies have criticised the government for failing to implement all of the changes in the time since.  More...

APRA releases 2020 Year in Review
APRA – 05 February 2021 – The APRA has released its 2020 Year in Review document. In a year that was heavily impacted by COVID-19, the publication provides an overview of how APRA went about fulfilling its mandate as a forward-looking safety regulator for Australia’s financial system.  More...

In practice and courts

ASIC Papers open for public comment

CP 334 Proposed changes to simplify the ASIC Derivative Transaction Rules (Reporting): First consultation
Comments close 1 March 2021.  More...

ASIC regulatory documents
11/02/2021 ASIC Derivative Transaction Rules (ADI Foreign Subsidiaries) Class Exemption 2021/51
Exemptive relief under the ASIC Derivative Transaction Rules (Reporting) 2013 allowing ADI foreign subsidiaries to apply an alternative test for reportable transactions and reportable positions 'entered into by the reporting entity in this jurisdiction'.
09/02/2021 CP 338 Remaking ASIC class order on parent entity financial statements
Attachment to CP 338: Draft instrument
Sets out ASIC's proposals to remake Class Order [CO 10/654] Inclusion of parent entity financial statements in financial reports, due to sunset on 1 April 2021.

ASIC Corporations, Superannuation and Credit (Amendment) Instrument 2020/99
Amends the ASIC Corporations and Credit (Internal Dispute Resolution – Transitional) Instrument 2019/965 to preserve ASIC's existing internal dispute resolution policy in relation to complaints received by financial firms before 5 October 2021.

APRA weekly data on the superannuation early release scheme
The APRA has published the latest industry-level and fund-level data on the temporary early release of superannuation scheme. The Early Release Initiative statistics for applications received between 20 April - 31 January 2021 are available on the APRA website at: COVID-19 Early Release Scheme (08 February 2021).

AFCA COVID-19 complaints snapshots
COVID-19 complaints snapshot – 3 March 2020 to 31 January 2021

ASFA Submissions
10 February 2021 Pre-Budget Submission

Cases

Westpac Securities Administration Ltd v Australian Securities and Investments Commission [2021] HCA 3
Corporations – financial services – where appellants had contacted members of superannuation funds of which they are trustees, advising each to accept offer to roll over their external superannuation accounts into their account with appellants – where s 766B(3)(b) of Corporations Act 2001 (Cth) defines "personal advice" to include "financial product advice" given or directed to person in circumstances where a reasonable person might expect provider to have considered one or more of that person's objectives, financial situation and needs – whether financial product advice given by appellants to members personal advice within meaning of s 766B(3)(b).
Corporations Act 2001 (Cth), ss 766B(3), 766B(4), 949A(2)(a).

Legislation

Commonwealth

Bills

Treasury Laws Amendment (Your Future, Your Super) Bill 2021
Introduced HR 17/02/2021 – Schedule 1 to the Bill amends the SGAA to limit the creation of multiple superannuation accounts for employees who do not choose a superannuation fund when they start a new job.
Schedule 2 to the Bill amends the SIS Act to require APRA to conduct an annual performance test for MySuper products and other products to be specified in regulations.

Act Compilation

Superannuation (Unclaimed Money and Lost Members) Act 1999
11/02/2021 – Act No. 127 of 1999 as amended.

Disclaimer
The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this newsletter is accurate at the date it is received or that it will continue to be accurate in the future.

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